The case of China’s Economic Reform: The Xi Jinping Era, a comparative analysis with Mao Zedong and Deng Xiaoping

Abstract

<p style="text-align: justify;">China is a faithful example when things are done well, great results are obtained, in part thanks to the role that the same culture played in the growth it has had and still has. Work and savings have been fundamental pillars for the economic development that this country during the last decades, not leaving aside the role played by the Western economies to nurture this reality; first, with the policies implemented by Mao and Deng when the country was in a great crisis generating the necessary investment and establishing a sufficient number of factories that allow to reactivate the Chinese economy; secondly, the opening by Xi to the western region becoming the passage of time, in one of the largest consumers and at the same time the largest producers in the world in different areas.</p>
 <p style="text-align: justify;">In a certain sense, it seems as if the powers of the West have exceeded looking for more short-term benefit, but without realizing the consequences that could be faced by adopting these decisions. On the other hand, China knew how to play the cards, your business became a truly business profitable: lend money and then be reimbursed in the coffers of the country, for the concept of selling products and paying interest on loans. The work of the State in the planning of economic policies, to medium and long term, which led to the generation of a market economy socialist with Chinese characteristics, does not remain outside when defining the economic success of the Asian giant. The implementation of this new economic model, which knew how to combine some dynamics of capitalism within the communist system, it played a very important role. The fact of generating great coordination between the public and private sectors, in addition to capture the market signals in a timely manner, allowed the results and economic policies were heading towards a prosperous path.</p>
 <p style="text-align: justify;">Nor can we ignore the autonomy and independence that has had the Communist Party to make political and economic decisions with the greatest opportunism and speed possible. This is proper to have a power not shared, which has undoubtedly generated that the measures taken obtain a high degree of efficiency.</p>
 <p style="text-align: justify;">This is how the application in China of a series of dynamics is explained of capitalism that allowed it, in a succession of conditions presented, that would grow by leaps and bounds as opposed to economies of most of the industrialized countries of the West. It is also in this way that it is understood that China has been able to take from poverty to 800 million people in 30 years (World Bank, 2012) and that, currently, is in the longed for place to be the largest economy world.</p>